Unfortunately we did not get enough bids and we had to scrap the process. The process was initiated before this government came in and I thought it was not prudent to keep extending it without a possible solution, said Piyush Goyal.
Govt scraps bidding process of Odisha & Tamil Nadu UMPPs
The government has abandoned the bidding process of two ultra-mega power projects (UMPPs) that were slated to come up in Odisha and Tamil Nadu.
Power and coal minister Piyush Goyal confirmed this at a press meet today and said a new committee will be set up to move this forward.
Goyal said: Unfortunately we did not get enough bids and we had to scrap the process. The process was initiated before this government came in and I thought it was not prudent to keep extending it without a possible solution. So the two bids have been scrapped for different reason. One of them was a single tender and I do not think nation benefits most with single tender bid and the other had some problem with the coal company and electricity company being two different entities which was not permitted in the current scheme of things, where coal blocks can be given only to the end user. Therefore both these UMPP bids have been aborted."
The private firms, which had participated in the first round of bidding for both the projects, withdrew their bids citing difficulties in securing finances for these projects.
As a result, while state-owned NTPC has emerged as the sole bidder for the Tamil Nadu project, NTPC and a NHPC- BHEL joint venture are in the fray for the Odisha UMPP.
Among the private players in the fray were Adani Power , CLP India, Jindal Steel & power , JSW Energy , Sterlite Energy and Tata Power .
(With inputs from PTI)
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